Vesa Tiitola, Tuomas Jalonen, Mirva Rantanen-Flores, Tuomas Korhonen, Johanna Ruusuvuori and Teemu Laine
This paper aims to explore how the maieutic role of management accounting (MA) can be sustained in the context of MA digitalization.
Abstract
Purpose
This paper aims to explore how the maieutic role of management accounting (MA) can be sustained in the context of MA digitalization.
Design/methodology/approach
The paper begins with practitioners’ descriptions of the context that makes the MA support of non-routine decisions maieutic. To understand how the maieutic characteristics can be sustained in future MA digitalization, the authors then analyze the discourses these practitioners have about artificial intelligence (AI) in providing MA support.
Findings
As a basis, the authors’ data show various maieutic characteristics within the use of MA answers in decision-making as well as within the MA process of generating such answers. The paper then identifies three MA digitalization discourses, namely, “computation,” “judgment” and human-AI “interaction” discourse, each with their unique agendas on how AI should be used.
Originality/value
The paper is based on the premises that AI and digitalization are often discussed without sufficient understanding about the context being digitalized. The authors’ data suggest that MA support in non-routine decision-making is fundamentally maieutic, and AI – as it currently stands – is not expected to change this by providing perfect answers. The authors provide novel insights about maieutic MA support and the current discourses on using AI in MA support, and how digitalization does not necessarily compromise maieutic MA support but instead has the potential to sustain or even enhance it.
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Gives an in depth view of the strategies pursued by the world’s leading chief executive officers in an attempt to provide guidance to new chief executives of today. Considers the…
Abstract
Gives an in depth view of the strategies pursued by the world’s leading chief executive officers in an attempt to provide guidance to new chief executives of today. Considers the marketing strategies employed, together with the organizational structures used and looks at the universal concepts that can be applied to any product. Uses anecdotal evidence to formulate a number of theories which can be used to compare your company with the best in the world. Presents initial survival strategies and then looks at ways companies can broaden their boundaries through manipulation and choice. Covers a huge variety of case studies and examples together with a substantial question and answer section.
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Defines “insider trading” and looks at the effects of insider trading on an economy. Considers the factors which have caused legislation and the rationale behind insider trading…
Abstract
Defines “insider trading” and looks at the effects of insider trading on an economy. Considers the factors which have caused legislation and the rationale behind insider trading. Compares the economic and financial approaches to the problem. Outlines the European, UK and US positions covering legislation, arguments, prohibitions and penalties. Cites important cases in the USA, which have caused changes in the law. Concludes that there is a need for standardization, together with better access to timely information but highlights that the markets require freedom within which to work effectively and accepts that there will always be an element of insider trading in any market.
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Devotes the entire journal issue to managing human behaviour in US industries, with examples drawn from the airline industry, trading industry, publishing industry, metal products…
Abstract
Devotes the entire journal issue to managing human behaviour in US industries, with examples drawn from the airline industry, trading industry, publishing industry, metal products industry, motor vehicle and parts industry, information technology industry, food industry, the airline industry in a turbulent environment, the automotive sales industry, and specialist retailing industry. Outlines the main features of each industry and the environment in which it is operating. Provides examples, insights and quotes from Chief Executive Officers, managers and employees on their organization’s recipe for success. Mentions the effect technology has had in some industries. Talks about skilled and semi‐skilled workers, worker empowerment and the formation of teams. Addresses also the issue of change and the training that is required to deal with it in different industry sectors. Discusses remuneration packages and incentives offered to motivate employees. Notes the importance of customers in the face of increased competition. Extracts from each industry sector the various human resource practices that companies employ to manage their employees effectively ‐ revealing that there is a wide diversity in approach and what is right for one industry sector would not work in another. Offers some advice for managers, but, overall, fails to summarize what constitutes effective means of managing human behaviour.
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Gary Spraakman, Cristobal Sanchez-Rodriguez and Carol Anne Tuck-Riggs
This paper aims to understand how the tasks of management accountants (MA) are affected by data analytics (DA).
Abstract
Purpose
This paper aims to understand how the tasks of management accountants (MA) are affected by data analytics (DA).
Design/methodology/approach
A qualitative methodology was deemed most appropriate given the exploratory nature of the research questions (RQ). In total, 10 open-ended interview questions were used to gather the evidence. The case study design was inductive, yielding rich data from 29 respondents representing 20 different organizations.
Findings
Answers were provided to three interrelated RQs about the use of DA by MA, namely, what are their responsibilities? How does this work support inference, prediction and assurance? And how can they ensure insights from DA can be turned into decisions that add value? The findings also indicate that MA have not taken charge of the data analytic opportunities and at present, their activities remain largely focused on descriptive and financial data analysis rather than more complex activities using external data, operational data and modeling.
Research limitations/implications
The limitation of this research is that it is based on a relatively small, geographically restricted sample (20 organizations in south-central Canada) as well by interviews that were only 60 min in duration.
Practical implications
Provides a base for the existing practice of management accounting with DA.
Social implications
Explains the social relationship between DA and management accounting.
Originality/value
Documented and explained the extent of actual DA use by MA.
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Andrea Nespeca and Maria Serena Chiucchi
In order to shed light on the implications of the business intelligence (BI) for management accounting (MA) and decision making, this study investigates as to how the use of the…
Abstract
In order to shed light on the implications of the business intelligence (BI) for management accounting (MA) and decision making, this study investigates as to how the use of the BI affects the production, transmission, and reception of performance measures (PM).
To investigate the issue at hand, a case study of an Italian company is carried out. The case study method is deemed suitable to explore the complex, penetrating, and unpredictable relationship between BI and PM.
The case analysis shows that the use of the BI can affect the production of PM by leading the organization to frame PM into an indicator setting. Moreover, the BI can affect the transmission by introducing a new, “visual” approach for presenting PM to decision makers, which is also relevant in the reception as a mobilizing factor.
This study contributes to improving the understanding of BI implications for MA and decision making, which is still limited in the accounting academia. Additionally, this research adds to extant knowledge about the relationship between measurement and management; more specifically, it contributes to understanding the “fate” of PM.
Furthermore, the findings illustrated in this chapter can be relevant from a practical point of view: by showing the role that BI solutions can play in producing and transmitting PM, the study shows the potential contribution of the use of the BI in managing and overcoming problems arising in these phases, favoring the use of these measures.
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This paper contributes to the literature by discussing the impact of machine learning (ML) on management accounting (MA) and the management accountant based on three sources…
Abstract
Purpose
This paper contributes to the literature by discussing the impact of machine learning (ML) on management accounting (MA) and the management accountant based on three sources: academic articles, papers and reports from accounting bodies and consulting companies. The purpose of this paper is to identify, discuss and provide suggestions for how ML could be included in research and education in the future for the management accountant.
Design/methodology/approach
This paper identifies three types of studies on the influence of ML on MA issued between 2015 and 2021 in mainstream accounting journals, by professional accounting bodies and by large consulting companies.
Findings
First, only very few academic articles actually show examples of using ML or using different algorithms related to MA issues. This is in contrast to other research fields such as finance and logistics. Second, the literature review also indicates that if the management accountants want to keep up with the demand of their qualifications, they must take action now and begin to discuss how big data and other concepts from artificial intelligence and ML can benefit MA and the management accountant in specific ways.
Originality/value
Even though the paper may be classified as inspirational in nature, the paper documents and discusses the revised environment that surrounds the accountant today. The paper concludes by highlighting specifically the necessity of including exploratory data analysis and unsupervised ML in the field of MA to close the existing gaps in both education and research and thus making the MA profession future-proof.
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Martin R.W. Hiebl, Birgit Feldbauer‐Durstmüller and Christine Duller
The purpose of the present paper is to investigate whether the transition from a family business to a non‐family business affects the institutionalisation of management accounting.
Abstract
Purpose
The purpose of the present paper is to investigate whether the transition from a family business to a non‐family business affects the institutionalisation of management accounting.
Design/methodology/approach
This paper is based on an online survey among all large and medium‐sized Austrian firms. Univariate and multivariate statistical analyses were used to test the impact of the level of family influence on aspects of the institutionalisation of management accounting. Firm size is included as the main control variable.
Findings
A lower level of influence from the controlling family was found to be correlated with the institutionalisation and intensification of management accounting in medium‐sized firms. For large firms, such a linear relationship could not be drawn. The level of education of management accountants was inversely correlated with the level of family influence in both large and medium‐sized firms.
Research limitations/implications
Further research into the reasons, underlying drivers and inter‐organisational promoters of management accounting change in family businesses is needed. Furthermore, the organisational impacts of the transition from family businesses to non‐family businesses deserve further investigation.
Originality/value
A framework for assessing the organisational effects of the transition from family businesses to non‐family businesses is provided. The empirical results on the impact of the transition on the institutionalisation of management accounting are presented. The level of family influence was found to act as a significant contextual factor for the organisation of management accounting in medium‐sized firms.
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Susana C. Silva, Leonardo Corbo, Božidar Vlačić and Mariana Fernandes
The present study seeks to outline the role of marketing automation (MA) in measuring the return on marketing activities and the challenges associated with reaching accountability…
Abstract
Purpose
The present study seeks to outline the role of marketing automation (MA) in measuring the return on marketing activities and the challenges associated with reaching accountability in marketing.
Design/methodology/approach
To investigate the objective of the study, the authors adopted a qualitative approach, conducting an exploratory study among ten key informants located in Portugal.
Findings
Based on the results of the qualitative analysis, a conceptual framework is proposed, which includes both strategic- and operational-level factors with the goal of creating a value-based agenda. In this agenda, executives such as the Chief Marketing Officer emerge as value creators, fostering business scalability, and further arguments are provided to justify budget allocation to MA activities.
Originality/value
Through careful research of the elements that characterize the phenomenon under study, the present paper ultimately contributes to a better understanding of MA and accountability within the current business paradigm.
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Managerial auditors (MAs) are frequently relying on mistaken mixed costs (MC) forecasting assumptions. Two such assumptions are that MC are linear within the relevant range and…
Abstract
Managerial auditors (MAs) are frequently relying on mistaken mixed costs (MC) forecasting assumptions. Two such assumptions are that MC are linear within the relevant range and variable costs vary proportionately with activity levels. Departure from these assumptions can lead to understating expenses, overstating profits, and even to fraud, litigation, and mounting professional liability risk. Develops a forecasting model of mixed cost error estimates, or error difference (ED). MAs can reduce the risk of litigation and professional liability by including such an ED in the internal control structure of a company. Uses Sensormatic Corporation and the electronics security industry as sample case because of the recent prominence of litigation and professional auditor liability verdicts. Focuses on the electronics security industry, but some of the findings may apply to other industries.